ADM

Archer-Daniels-MidlandNYSE:ADM Stock Report

Market Cap

US$34.9b

7D

4.2%

1Y

31.0%

Updated

18 Sep, 2021

Data

Company Financials +
ADM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends5/6

ADM Overview

Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally.

Share Price & News

How has Archer-Daniels-Midland's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ADM's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

4.2%

ADM

1.1%

US Food

-0.6%

US Market


1 Year Return

31.0%

ADM

11.2%

US Food

33.8%

US Market

Return vs Industry: ADM exceeded the US Food industry which returned 11.2% over the past year.

Return vs Market: ADM underperformed the US Market which returned 33.8% over the past year.


Shareholder returns

ADMIndustryMarket
7 Day4.2%1.1%-0.6%
30 Day5.2%-1.8%1.6%
90 Day2.9%-3.9%4.6%
1 Year34.4%31.0%13.7%11.2%35.8%33.8%
3 Year36.1%24.0%23.0%13.3%60.0%50.1%
5 Year71.3%46.9%17.8%1.5%123.0%98.7%

Long-Term Price Volatility Vs. Market

How volatile is Archer-Daniels-Midland's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Archer-Daniels-Midland Fundamentals Summary

How do Archer-Daniels-Midland's earnings and revenue compare to its market cap?
ADM fundamental statistics
Market CapUS$34.90b
Earnings (TTM)US$2.31b
Revenue (TTM)US$74.92b

15.1x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADM income statement (TTM)
RevenueUS$74.92b
Cost of RevenueUS$69.52b
Gross ProfitUS$5.41b
ExpensesUS$3.09b
EarningsUS$2.31b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.12
Gross Margin7.21%
Net Profit Margin3.09%
Debt/Equity Ratio44.9%

How did ADM perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

35%

Payout Ratio

Valuation

Is Archer-Daniels-Midland undervalued compared to its fair value and its price relative to the market?

16.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADM ($62.39) is trading below our estimate of fair value ($74.33)

Significantly Below Fair Value: ADM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ADM is good value based on its PE Ratio (15.1x) compared to the US Food industry average (21.1x).

PE vs Market: ADM is good value based on its PE Ratio (15.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: ADM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ADM is good value based on its PB Ratio (1.6x) compared to the US Food industry average (2.3x).


Future Growth

How is Archer-Daniels-Midland forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADM's earnings are forecast to decline over the next 3 years (-0.7% per year).

Earnings vs Market: ADM's earnings are forecast to decline over the next 3 years (-0.7% per year).

High Growth Earnings: ADM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ADM's revenue (0.3% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: ADM's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADM's Return on Equity is forecast to be low in 3 years time (10.6%).


Past Performance

How has Archer-Daniels-Midland performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADM has high quality earnings.

Growing Profit Margin: ADM's current net profit margins (3.1%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: ADM's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: ADM's earnings growth over the past year (30.6%) exceeds its 5-year average (5.7% per year).

Earnings vs Industry: ADM earnings growth over the past year (30.6%) underperformed the Food industry 31.7%.


Return on Equity

High ROE: ADM's Return on Equity (10.7%) is considered low.


Financial Health

How is Archer-Daniels-Midland's financial position?


Financial Position Analysis

Short Term Liabilities: ADM's short term assets ($28.5B) exceed its short term liabilities ($17.3B).

Long Term Liabilities: ADM's short term assets ($28.5B) exceed its long term liabilities ($12.0B).


Debt to Equity History and Analysis

Debt Level: ADM's debt to equity ratio (44.9%) is considered high.

Reducing Debt: ADM's debt to equity ratio has increased from 41.7% to 44.9% over the past 5 years.

Debt Coverage: ADM's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: ADM's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Dividend

What is Archer-Daniels-Midland current dividend yield, its reliability and sustainability?

2.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADM's dividend (2.37%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: ADM's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: ADM's dividends per share have been stable in the past 10 years.

Growing Dividend: ADM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.4%), ADM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADM's dividends in 3 years are forecast to be well covered by earnings (36.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.7yrs

Average management tenure


CEO

Juan Luciano (60 yo)

6.67yrs

Tenure

US$21,994,433

Compensation

Mr. Juan Ricardo Luciano has been the Chief Executive Officer of Archer Daniels Midland Company (Archer-Daniels-Midland Company) since January 1, 2015 and has been its President since February 2014. Mr. Lu...


CEO Compensation Analysis

Compensation vs Market: Juan's total compensation ($USD21.99M) is above average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Juan's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ADM's management team is seasoned and experienced (6.7 years average tenure).


Board Members

Experienced Board: ADM's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ADM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Archer-Daniels-Midland Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Archer-Daniels-Midland Company
  • Ticker: ADM
  • Exchange: NYSE
  • Founded: 1902
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$34.899b
  • Shares outstanding: 559.37m
  • Website: https://www.adm.com

Number of Employees


Location

  • Archer-Daniels-Midland Company
  • 77 West Wacker Drive
  • Suite 4600
  • Chicago
  • Illinois
  • 60601
  • United States

Listings


Biography

Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally. The company operates t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.